UK supermarket chain Wm Morrison has agreed with BP Oil UK to dissolve the partnership between Safeway, acquired by Morrison in 2004, and BP.
The partnership’s 61 petrol filling sits and convenience stores will be divided between BP which will get 31 and Safeway which will get 30.
The effect of the transaction is that following completion each of BP and Safeway will have a 100% interest in approximately one half of the Partnership related net assets, Morrison said.
At 30 January 2005 the book value of Safeway’s interest in the partnership related net assets was £67.4m (US$127m).
Morrison said it expected the transaction would be completed before the end of June 2005. BP and Safeway have made arrangements for the continued supply of groceries and fuel to each other for a period following completion and the partnership’s sites will continue to be operated for a period of up to nine months following completion under the joint BP Safeway brand.